Non Fungible Token 101 

Simple Guide to NFT

NFT is a special type of digital asset, which represents the ability to be unique via blockchain technology. The identifying data inside NFTs is stored in their smart contracts. Non-fungible tokens are not interchangeable.

What does it mean?

The fungibility properties are simple to understand. When an asset is fungible, for example, a Bitcoin — it is interchangeable with other Bitcoins of its same kind. There are no defining features of that specific coin. This also applies to gold, oil, or dollars in your pocket.

The most popular platforms for creating NFT tokens are Ethereum. Today majority tokens are issued on the basis of the following standards: ERC-721 / ERC-1155

Attribute of NFT

Uniqueness 👑

The NFT architecture describes how this token differs from all the rest. It is like a built-in certificate that confirms the authenticity of the asset. Imagine that you own a sword in your favorite online game whose properties cannot be faked or changed.

Indivisibility⛓

Unlike Bitcoin, NFTs cannot be divided into smaller denominations. Such assets cannot be bought or sold in parts - only as a whole. Think about that you can not buy 1/3 of the ticket to a movie or concert. Only as a single item.

Rarity⏳

Collectibility and rarity give value to assets. NFTs are no exception. Some assets are valuable on their own because they are limited in number. But the main reason why this characteristic is formed is virality. Mona Lisa would not have been so famous if had not become a meme.

Fungible vs Non-Fungible

1 Bitcoin = 1 Bitcoin

Gaming 🎮

Art 🎨

Collectibles 💎

Virtual Assets 🖥

In online games owning rare weapons or skins to give a huge advantage. Often players sell or exchange this stuff with each other, not knowing that all rights to these objects belong to the game developers. NFTs change the paradigm and give users the right to own the game thing.

Until recently, all art created on the internet belonged to everyone. The use of other people's pictures or logos has become the norm. With the advent of NFTs, digital artists will be able to control their artworks with proof of ownership.

Crypto domains (.eth or .crypto) or land in virtual reality - all this exists now. The space for creating virtual assets using NFT is almost unlimited. In the next 5-10 years, we may see the rise of digital property.

As we already know, NFTs provides a new type of use for collectibles. Imagine the value of receiving digitized collectibles if they are created by your favorite celebrities or sports stars. Also, NFTs can expand the list of collectible items, not limited to baseball cards, coins, or stickers.

+482%

+50%

+17%

(forecasts)

The NFT market is growing at a rapid phace. For example, in the marketplace, Open Sea weekly trading volume reaches 8 000 ETH (≈$3,2 m). NFT games are considered the most popular niche. The growth of players in NFT games every year increases by 30%.

Interesting Facts

• Dragon — is the most expensive kitty to be ever traded in the history of the CryptoKitties. It was sold for 600 ETH ($170,000 approximately) in September 2018

• The title of “most valuable” NFT belongs to MyCryptoHeroes. This series of battle tokens have a weekly volume of 350 ETH ($60,000)

• Total Non Fungible Tokens volume have reached $100m since 2017 (as of July 2020)

• The first project that took the NFTs market to the mainstream is CryptoKitties. CryptoKitties is a video-game that allows users to breed and collect unique crypto cats. Each cat created on CryptoKitties platform is 100% unique and impossible to replicate.

Thank You!

This deck was created for: Untitled NFT Hackathon
Explore NFT world and always DYOR